UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16043 / January 25, 1999
SEC OBTAINS $1.374 MILLION AWARD AGAINST PENNY STOCK PROMOTER,
MATT MATSON OF POMPANO BEACH, FLORIDA
SEC v. THE HOME LINK CORP., HOME LINK OF FLORIDA, INC., HOME LINK
OF NEVADA, INC., and MATT MATSON, UNITED STATES DISTRICT COURT,
SOUTHERN DISTRICT OF FLORIDA, CASE NO.96-6860-CIV-GONZALEZ
The Securities and Exchange Commission (SEC) announced that
on January 11, 1999 United States District Judge Jose A.
Gonzalez, Jr., ordered Matt Matson ("Matson"), a Pompano Beach,
Florida stock promoter, to pay $1,274,00 in disgorgement and
$100,000 in civil money penalties.
In July 1996 the SEC sued Matson in connection with his
promotion earlier that year of $1 million of the stock in each of
two subsidiaries of The Home Link Corporation, Home Link of
Nevada, Inc. and Home Link of Florida, Inc. The SEC alleged that
Matson had fraudulently promoted the stock through a number of
fraudulent misrepresentations to the financial press, market
professionals and investors. On the SECís motion, the Court
enjoined Matson and the other defendants from further violations
of the securities law, froze their assets and appointed a
receiver who took control, and ultimately liquidated, the Home
Link companies. Shortly before the lawsuit was filed, the
Commission suspended trading of Home Link's stock for the maximum
10-day period permitted under Section 12(k)(1)(A) of the Exchange
Act because there appeared to be a lack of current and accurate
information concerning, among other things, Home Link's
capitalization, whether Home Link was pursuing a NASDAQ listing,
and Home Link's business prospects.
On September 25, 1997, an SEC Administrative Law Judge
("ALJ") entered an order, which has since become final, barring
Matson from participating in the offering of any penny stock,
including acting as a promoter, finder, consultant, agent, or
other person who engages in actions with a broker, dealer, or
issuer for purposes of the issuance or trading in any penny
stock, or inducing or attempting to induce the purchase or sale
of any penny stock.